Plato Global Shares Income A is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - Large Income Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Plato Global Shares Income A has Assets Under Management of 62.82 M with a management fee of 0.99%, a performance fee of 0.00% and a buy/sell spread fee of 0.3%.
The recent investment performance of the investment product shows that the Plato Global Shares Income A has returned 2.03% in the last month. The previous three years have returned 11.2% annualised and 12.03% each year since inception, which is when the Plato Global Shares Income A first started.
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Plato Global Shares Income A first started, the Sharpe ratio is NA with an annualised volatility of 12.03%. The maximum drawdown of the investment product in the last 12 months is -3.79% and -21.56% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Plato Global Shares Income A has a 12-month excess return when compared to the Foreign Equity - Large Income Index of 3.95% and -0.08% since inception.
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Plato Global Shares Income A has produced Alpha over the Foreign Equity - Large Income Index of NA% in the last 12 months and NA% since inception.
For a full list of investment products in the Foreign Equity - Large Income Index category, you can click here for the Peer Investment Report.
Plato Global Shares Income A has a correlation coefficient of 0.97 and a beta of 1.02 when compared to the Foreign Equity - Large Income Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
For a full quantitative report on Plato Global Shares Income A and its peer investments, you can click here for the Peer Investment Report.
For a full quantitative report on Plato Global Shares Income A compared to the Developed -World Index, you can click here.
To sort and compare the Plato Global Shares Income A financial metrics, please refer to the table above.
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For the month ended 31 August 2023, the Plato Global Shares Income Fund (Class A) (‘Fund’) generated a positive total return of +2.4% (after fees), strongly outperforming the benchmark. The Fund distributed 0.5% of income. Since inception, the Fund has delivered +6.0% p.a. net yield from global equities, exceeding the investment objective to deliver +4% more income than the benchmark, which only yielded 1.7% p.a.
When viewed in local currency terms, global markets were challenged throughout August. Weak US markets (Nasdaq -2.2%, SP500 -2.4%), were driven by concerns over the Chinese economy, especially around real estate, elevated yields, and a Fitch downgrade. Energy was the only sector in the S&P 500 that recorded a positive month. European and Asian markets followed suit, with similar pressures compounded by a 0.25% hike from the BoE in Europe (UK -3.4%, Germany -3%, Japan -1.7%, Hong Kong -8.5%). Improving sentiment regarding Chinese stimulus and predictions of peaking global interest rates provided a small rally into month end, but it was too little too late. Oil (WTI +2.2%) jumped on the back of output cuts being extended from both Saudi Arabia and Russia. The Aussie dollar fell, driven by a strong US dollar and weakening Chinese economy. The index was down -2.3% in USD terms, however a weak Aussie dollar (-3.5% v USD) converted a negative return to a positive return (+1.6%) when based in AUD.
The Fund continued to generate strong excess income. From a country perspective the drivers were the USA and the UK. At the sector level substantial income came from Financials, followed by Industrials. Stock examples of these exposures include Singaporean industrial, Singapore Airlines, and UK financial, HSBC Holdings Plc. The Plato model invests in such companies to benefit from substantial regular and special dividends.
For the month ended 31 May 2023, the Plato Global Shares Income Fund (Class A) (‘Fund’) delivered a net yield of +1.5% and a positive total return of +1.6% (after fees), outperforming a positive benchmark. Since inception, the Fund has delivered +6.1% p.a. net yield from global equities, exceeding the investment objective to deliver +4% more income than the benchmark.
In USD terms global markets were weak, although a falling Aussie dollar boosted returns for Australian investors when converted to base currency. Risk off sentiment, weak domestic jobs and Chinese data put pressure on the local dollar (AUDUSD -1.7%). In the US optimism on the debt ceiling deal and strength in the tech sector, driven by demand for AI processing products, offset the weakness in energy stocks (S&P 500 +0.3%, Nasdaq +5.8%). In Europe commodity weakness and a pullback in luxury discretionary products was too much for any tech strength and led to a strong market decline (France -5.2%, UK -5.4%). Asia was further impacted by weaker than expected Chinese PMI data, although Japan rallied on strong domestic results and a weaker Yen (Hong Kong -8.4%, Japan +7%). Global growth concerns, and weaker Chinese data, saw a fall in demand for oil and hence negative price action (WTI -11.3%).
The Fund continued to generate strong excess income, helped by the fact that European companies pay substantial dividends at this time of year. From a country perspective the drivers were Germany and Norway. At the sector level substantial income came from Materials and Financials. Stock examples of these exposures include French Financial, A2A Spa, and German materials business, Heidelbergcement. The Plato model rotates into such companies to benefit from substantial regular and special dividends.
The Fund outperformed, despite headwinds due to the relative outperformance of large cap (MSCI World Small Cap -3%, MSCI World Large Cap -0.8% in USD), growth companies (MSCI World Growth +2.4%, MSCI World Value -4.9% in USD). The Fund benefitted from strong stock selection in the US and UK. This is one of the strategy benefits, allowing income to be generated from European holdings and excess return being found elsewhere in the portfolio. From a sector perspective, the main outperformance was in IT, in contrast to the previous month. Positive stock selection came from positions in Broadcom and NVIDIA, held for strong expected returns, which benefitted from the run in AI exposed stocks.
The Fund remains actively positioned to seek superior income for low tax investors, whilst maintaining full equity capital exposure and diversification to both global developed countries and sectors.
For the month ended 31 October 2022. the Plato Global Shares Income Fund (Class Al (‘Fund’) delivered o net yield of 0.3% after fees and a total return of -8.2% after fees. outperforming a strong index (+7.8%). Over the last 12 months the fund has outperformed the index by +1.9%. after fees. Since inception. the Fund continues to deliver 6% p.o. net yield from global equities after fees, which is 4.2% p.o. more than the Benchmark.
In October. Global equity markets reversed recent losses, posting a strong month. The main driver was the surging Energy sector. supported by o strong oil price (WTI +8.9%). Although still positive, the US tech sector pored bock of the end of the month, os markets positioned for the anticipated Fed rote increase (S&P 500 .8%. Nosdaq +3.9%). European markets followed suit. despite recessionary concerns and politico) turmoil in the UK (UK .2.9%. Germany .9.4%). Asian markets were mote mixed. Hong Kong experiencing contagion from Chino, where policy was not supportive for the struggling retail sector and the leading party underlined their commitment to Zero Covid (Nikkei +6.4%. Hong Kong -14.7%). Gold 1-1.6%) continued a downward slide, driven by increasing US rates and consequently rising treasury yields. The local currency remained relatively flat. with rate increases offset by Greenback strength.
For the month ended 30 September 2022. the Plato Global Shores Income Fund (Class AI (‘Fund’) delivered a net yield of 0.4% and total return of -3.7% after fees, underperforming a weak index (-3.2%). Since inception, the Fund continues to deliver 6% p.a. net yield from global equities. which is 4.3% p.a. more than the Benchmark. This is despite the fall in market yields over recent years.
In September. Global equity markets furthered the losses felt during the previous month. Despite positive payroll data, US markets posted severe falls, driven by high inflation. the subsequent requirement for the Fed to raise interest rates and the potential for that to result in o recession (S&P500 -9.3%, Nasdaq -10.5%). The rote sensitive real estate sector was the worst performer (S&P 500 Real Estate -13.6%). These themes impacted all regions globally. Sentiment in European markets was also impacted by the annexation of regions in Ukraine and both bond and currency issues in the UK. driven by the new governments mini budget (UK -5.4%. France -5.9%). Asian markets further reflected Chinese lockdowns in the region. (Hong Kong -13.7%). Despite its safe haven status. Gold was pushed lower by rising US yields and a stronger US dollar (Gold -3%). The stronger US dollar also drove oil and the Aussie dollar lower (WTI -11.2%. AUDUSD •6.5%).
For the month ended 31 August 2022, the Plato Global Shares Income Fund (Class A) (‘Fund’) delivered a net yield of 0.3% and a total return of -1.8%. outperforming a weak index (-2.5%). Since inception, the Fund continues to deliver 6% p.a. net yield from global equities, which is 4.3% p.a. more than the Benchmark. This is despite the fall in market yields over recent years.
After the bounce in July, global equity markets resumed the previous downward trend. Despite initial strength, US markets (S&P500 -4.2%. Nasdaq -4.6%) posted a negative month driven by the Feds hawkish stance at Jackson hole and consequent tightening policy. US 10-year bond yields rose as the Fed said they were willing to cause “some pain” to tame inflation and that they were unlikely to reduce rates in 2023. Energy was the strongest sector, conversely the rate sensitive Real Estate sector fell over -4%. The story in Europe was similar, compounded by soaring inflation, a hawkish ECB, and the seeds of an energy crisis (Germany -4.8%, France -5%). There were some bright spots in Asian markets (Singapore +0.3%, Japan +1%). Gold (-3.1%), Crude oil (-9.2%) and the Aussie dollar (AUDUSD -2.1%) all posted a weak month. This was driven by Fed policy, recessionary fears, and a strong greenback comparatively.
For the month ended 31 July 2022. the Plato Global Shares Income Fund (Class A) l•Funcrl delivered a net yield of D7% and a total return of .4.8%. trailing a strong growth driven index (+6.4%). As per regulation the income that had gone ex dividend. but not been received, in the financial year ending June 2022 has been included in this distribution. Since inception, the Fund has delivered 6% p.o. net yield from global equities. which is 4.3% p.o. more than the Benchmark.
After a significant drowdown in June. global equity markets bounced back. Lower bond yields buoyed longer duration growth sectors. for example IT. which rallied hard into month end. The US S&P 500 (+9.1%) index posted its best month since 2020. with all sectors ending the month positive. After a soft start from the banks, earnings season picked up. consolidated by a strong retail sales print. The ECB delivered its first rate increase in o decode. at the some time that o better than expected reporting season boosted European markets (Germany .5.5%. France .8.9%). A slow down in Chinas growth rate. and concerns over the property sector, resulted in mixed numbers from Asian markets (Hong Kong -7.8%. Japan -5.3%). A strong US dollar hurt gold (-4%) and provided a headwind to the Aussie dollar. Despite this the AUD posted o positive return (+1.2%). assisted in port by strong local employment data. Crude oil (WTI -6.8%) had a volatile month. falling on demand concerns and the weak global growth outlook.
For the month ended 30 June 2022. the Plato Global Shares Income Fund (Class A) (‘Fund’) delivered a net yield of 0.1% and a total return of —5.5%. trailing a weak index by -0.8%. As normal. a portion of the income is not received until after financial year end. As a result, it will be distributed in July. Since inception. the Fund has delivered 6.0% p.a. net yield from global equities. which is 4.2% p.a. more than the Benchmark.
Global equity markets posted a significant drowdown in the month of June. US equities led the fall. returning the weakest first half of a year since 1970. The clear driver was the energy (-17%) and materials (-14.1%) sectors. Higher than expected inflation data heightened market expectations for future rate increases. Investors became more concerned about the risk of recession. providing a headwind to markets (Nasdaq -8.7%. S&P 500 -8.4%). European markets took a lead from the US. reflecting similar concerns and with resources falling heavily (UK -5.8%. France -8.4%). Asian markets. although down. held up slightly better (Nikkei -3.3%. Singapore -4%). The major Hong Kong index (+2.1%1 even positive, driven by better than expected Chinese data and the easing of their COVID restrictions. Oil was volatile in June. falling due to the same global recession concerns and associated reduction in demand (WTI -7.8%). Gold (-1.6%) held up relatively well as a hedge against inflation. The Aussie dollar was supported by a 0.5% rate rise. but fed hikes provided even more strength to the USD (AUDUSD -3.8%) This reduced the broad market falls. when converting for domestic investors.
The Fund continued to generate strong excess income, driven at the sector level by Financials and Utilities. From a country perspective the driver was the United States. United Kingdom. and Italy. Stock examples of these exposures include US health business. Merck & Co. and Italian financial. Postle Italiane SPA. The Plato model rotates into such companies to benefit from substantial regular and special dividends.
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